We were informed that our loan is with the underwriting stage at this time, but I’m not sure how that pertains to the complete approval process. Does that mean we’re with the finish line, as it were? Is underwriting the very last step in the mortgage approval process?”
Let’s get started with the short answer and expand outward from that point. No, underwriting is just not the last part of the 房貸. You still have to go to closing to sign a lot of paperwork, and then the loan should be funded.
The underwriting process itself can be smooth or “bumpy,” dependant upon your financial situation. The underwriter might request much more information, including banking documents or letters of explanation (LOE).
So you’re near to the last step – but not quite with the finish line.
Is Underwriting the final Part of the Mortgage Process?
Let’s look at the overall mortgage process, and just how the underwriting step fits into it. Here’s a simplified explanation in the various stages:
Origination: This is the time you initially make an application for the financing, or get pre-approved by way of a lender. It’s also when you enter real estate market and begin searching for a house.
Processing: Once you’ve found a house and made a proposal to get it, the mortgage company will order an appraisal to determine the value. They’ll also gather a variety of loan documents and prepare or “process” them for the underwriter’s review.
Underwriting: This is why the rubber meets the road, as we say. During this step, the mortgage underwriter will review all documents relating to the borrower and also the property being purchased, to make sure they meet all applicable guidelines. The underwriter might also identify certain “conditions” that should be resolved just before final approval and funding. (Discover more about conditional approval.)
Closing: If the underwriter says that you’re loan is “clear” for closing, it’s time to sign some paperwork! You’ll sign a variety of loan documents, tax records and stuff like that, and then you’ll obtain the tips for your house. The specific funding often takes place a day or two after closing, but this will vary.
As you can see, underwriting is just not the final stage in the mortgage approval process. It’s one of the most important steps, since the underwriter is basically the “judge and jury” who decides if the loan may be funded. But it’s not the final step.
What the Borrower Ought To Do at this point
Being a borrower, the most effective thing you can do at this stage is to stay in close exposure to your loan officer and quickly handle any conditions that arise.
If you’re lucky, you’ll sail throughout the underwriting process without a hitch. But if the underwriter does identify certain conditions that must definitely be resolved, work to resolve them as dexipky44 as possible. This will assist keep your closing on course preventing delays.
For instance, it’s common for 房屋貸款 underwriters to request letters of explanation, or LOEs, regarding specific bank transactions. The sooner you provide you with the requested information, the earlier the underwriter can “clear” the financing for closing. This is what everybody wants, but it sometimes takes some cooperation to have there. So stay in contact with your loan officer, that is probably your main reason for contact. And handle any information or document requests as soon as possible.